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  • FIRST POST
    • class2ldn
    • By class2ldn 9th Aug 17, 11:10 AM
    • 316Posts
    • 71Thanks
    class2ldn
    To stay with Halifax or not
    • #1
    • 9th Aug 17, 11:10 AM
    To stay with Halifax or not 9th Aug 17 at 11:10 AM
    Hi guys, we are due to remortgage at the end of September and we've just got a quote from the Halifax to remortgage.
    We currently have a balance of 224727 and they have valued our house at 280260.
    The rate they have offered is 1.79% for 28 years and 2 months until October 2019.
    It's £850 a month which is a great saving over our current rate of 4.09 and 1124 a month.
    I'm just wondering how it's best to work it out in comparisons to other lenders.
    We don't really want to pay fees so the cheapest one seen is 28 years at 1.74 with HSBC and that's 845 a month but obviously that's 28 years and not the 2 months added on that Halifax have added on as we would be remortgaging early by 2 months.
    Now if we change lender they would charge us an ERC so I'm stuck as to whether remortgage now woth Halifax and save straightway or wait 2 months to see what other lenders will give us.
    I've also noticed that we are right on the edge of the 80% LTV so if we pay another 2 months off that may tip us in to the 75-80% bracket and reduce it further.
    Is it best to wait?
Page 2
    • class2ldn
    • By class2ldn 9th Aug 17, 7:36 PM
    • 316 Posts
    • 71 Thanks
    class2ldn
    I'm getting a 4k payrise in October so we'll just overpay some more
    • Thrugelmir
    • By Thrugelmir 9th Aug 17, 8:01 PM
    • 56,198 Posts
    • 49,577 Thanks
    Thrugelmir
    So would you advise just a nice easy remortgage with Halifax?
    Tbh haven't even considered all the fees for solicitors etc.
    When you look at it like that I guess the Halifax doesn't look a bad option.
    Also no guarantee of being accepted with a new lender.
    Originally posted by class2ldn
    Staying with an existing lender is a product switch. Not a remortgage. As there's none of the formalities or expense in switching lenders. A longer term fix would spread the cost of remortgaging potentially. Fixing continuously on two years rates also leaves one exposed to a rapid change in market rates. Mortgages aren't going to remain cheap forever. Having a mortgage needs to be considered as a marathon rather than a series of 400 metre qualifying rounds.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • class2ldn
    • By class2ldn 9th Aug 17, 8:05 PM
    • 316 Posts
    • 71 Thanks
    class2ldn
    Well we will be moving after the 2 years upto the cotswolds so we don't want any longer for now.
    • getmore4less
    • By getmore4less 10th Aug 17, 2:41 AM
    • 30,780 Posts
    • 18,386 Thanks
    getmore4less
    So would you advise just a nice easy remortgage with Halifax?
    Tbh haven't even considered all the fees for solicitors etc.
    When you look at it like that I guess the Halifax doesn't look a bad option.
    Also no guarantee of being accepted with a new lender.
    Originally posted by class2ldn
    Also you are really tight on 80% if that is the lenders change point and their valuation comes back a tiny bit lower you are in the 80%-85% window.

    if you don't have the cash that limits you to lenders that allow adding the fees.

    just redoing a switch today with 2 months two go and the Sainsbury

    the new 1.94% rate means a payment of £863

    If you switch now and pay the same in 2 months.
    £224727 @ 1.94% £1124pm £223,204
    £224727 @ 4.09% £1124pm £224,010


    £223,204 @ 1.94% £863 £210,926
    £225,005 @ 1.24% £863 £209,692
    potential for saving £1.2k if they offer the free valuation legals
    if you can't make the 80%
    £225,005 @ 1.39% £863 £210,354
    that's reduced the saving to £572.

    or take the lower payment(28y full term)
    £225,005 @ 1.24% £793pm £211,392
    £225,005 @ 1.39% £809pm £211,667


    if you plan to overpay you lower the potential savings

    With a move on the cards I would be building up cash pot, moves don't come cheap.
    • class2ldn
    • By class2ldn 10th Aug 17, 7:20 AM
    • 316 Posts
    • 71 Thanks
    class2ldn
    Oh we will be trust me lol, which is why I want to make the right choice now.
    Just not sure what's best.
    So what your saying is if I wait 2 months on 1124 and get the lower rate of 1.24 I could save 1.2k overall?
    Where's 225 come from?
    Last edited by class2ldn; 10-08-2017 at 7:24 AM.
    • class2ldn
    • By class2ldn 10th Aug 17, 7:34 AM
    • 316 Posts
    • 71 Thanks
    class2ldn
    Sainsburys do a fee free at 1.64 for 832 which looks OK. Says free valuation and fee assisted legal fees but will we still save if we pay the 1124 for 2 months?
    Is it still worth taking the one with the fee and adding it onto the mortgage?
    Does it matter how that is paid? Ie credit card on 0% maybe?
    Last edited by class2ldn; 10-08-2017 at 7:41 AM.
    • pawlala
    • By pawlala 9th Oct 17, 7:05 AM
    • 1,225 Posts
    • 3,276 Thanks
    pawlala
    Have you answered your own question yet? Did did you stay with the Halifax.
    Mortgage free I: 8th December 2009!
    Mortgage free II: New Year's Eve 2013!
    Mortgage free III: Est. Dec 2019...
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